Method and apparatus for marking manufactured items

ABSTRACT

A method and apparatus includes providing a cryptographic key, in an inactive state, to a point in a supply chain for manufactured items, providing the cryptographic key, in an active state, and an activation code for activating the cryptographic key, to a verification centre, and providing the activation code to the point in the supply chain in response to the point in the supply chain transmitting information relating to the received cryptographic key. The method includes generating, at the point in the supply chain, an identification (ID) code for each manufactured item, derived from the cryptographic key in the active state and a dynamic key generated for each batch of manufactured items. Including providing the dynamic key for each batch of manufactured items to the verification centre, marking each manufactured item with the ID code, and counting the actual or correct number of ID codes marked on the manufactured items.

CROSS REFERENCE TO RELATED APPLICATIONS

The application is entitled to the benefit of and incorporates byreference essential subject matter disclosed in InternationalApplication No. PCT/EP2011/073588 filed on Dec. 21, 2011 and EuropeanPatent Application No. 10252258.8 filed on Dec. 30, 2010.

FIELD OF THE INVENTION

The present invention relates to methods and apparatus for markingmanufactured items. En particular, the present invention relates tomarking packaged goods, for example packs or cartons of cigarettes andother tobacco products.

BACKGROUND OF THE INVENTION

Contraband and counterfeit goods cause a significant loss of revenue toproducers and to government authorities. Counterfeit goods of inferiorquality which are illegally sold are also detrimental to the customerand to the manufacturer. Customers are affected because they couldobtain goods of inferior quality which may be hazardous. This isparticularly important for products such as pharmaceuticals.Manufacturers are affected because they may suffer a loss of reputation,an increase in competition with their own products, and infringement ofother legal rights. Contraband goods, which are goods manufactured forthe purposes of evading taxes or government regulations, are also aconsiderable problem for producers and government authorities. Thesegoods are illegally traded or imported and can result in significantlosses in revenue.

The problems of contraband and counterfeiting are also particularlyacute for goods subject to taxation, for example tobacco products. Theproblems also exist for many other kinds of traded products carrying astrong brand value. These include many internationally traded productssuch as perfumes, alcohols, watches and luxury goods. So, manufacturers,customers, distributors, wholesalers, importers, government authoritiesand other authorized parties need to be able to verify easily thatparticular goods are genuine. Moreover, government authorities and otherauthorized parties need to be able to verify easily that the volume ofitems manufactured adheres to authorized volumes, particularly for goodssubject to taxation. Government authorities and other authorized partiesfurther need to be able to verify tax status for goods subject totaxation and protect revenues derived from such taxation.

There exists a need for an improved method and apparatus for markingmanufactured items, particularly one which can be used for taxverification, production volume verification and authentication ofmanufactured items.

SUMMARY OF THE INVENTION

According to a first aspect of the invention, there is provided a methodof marking manufactured items, comprising: providing a cryptographic keyin an inactive state to a point in a supply chain for the manufactureditems; providing the cryptographic key in an active state and anactivation code for activating the cryptographic key in the inactivestate to form the cryptographic key in the active state, to averification centre; providing the activation code to the point in thesupply chain in response to the point in the supply chain transmittinginformation relating to the received cryptographic key, the activationcode allowing the cryptographic key in the inactive state at the pointin the supply chain to be activated to form the cryptographic key in theactive state; generating, at the point in the supply chain, anidentification (ID) code for each manufactured item, the ID code beingderived from the cryptographic key in the active state and a dynamic keygenerated for each batch of manufactured items; providing the dynamickey for each batch of manufactured items to the verification centre;marking each manufactured item with the ID code; and counting the numberof ID codes marked on the manufactured items.

The invention provides an improved method for marking manufactureditems. This method may be used for tax verification (for manufactureditems which are subject to taxation), for production volume verificationand for authenticating manufactured items. One ID code is marked on eachmanufactured item, such that each manufactured item can be uniquelyidentified. Counting the number of ID codes marked on the manufactureditems ensures that rejected or removed manufactured items are notidentified. That is to say, the correct or actual number of manufactureditems marked is counted.

The manufactured items may be any manufactured items, including tobaccoproducts, such as cigarette packs or cigarette cartons, or other itemscarrying a strong brand value or subject to taxation. The point in thesupply chain may comprise any location, site, place or position within asupply chain for the manufactured items. For example, the point in thesupply chain may comprise an importation point, a distribution point, apurchaser, a wholesaler or any other link in the supply chain. Mostpreferably, however, the point in the supply chain comprises aproduction centre or production line for the manufactured items.

The step of marking each manufactured item may comprise ink jetprinting, holographic printing, laser printing or any other printing ormarking that allows printing or marking of the ID codes on each item.The step of marking each manufactured item may comprise printing ormarking each item, printing or marking external packaging, printing ormarking adhesive labels or tags or any other appropriate printing ormarking. The point in the supply chain may comprise a sensor fordetecting the marked ID codes on manufactured items. The sensor mayconfirm that each ID code has been properly marked on the manufactureditem. The sensor may count only the number of ID codes properly markedon the manufactured items.

In one embodiment, the cryptographic key is generated in a key generatorseparate from the point in the supply chain.

The cryptographic key is simply any piece of information (for example anumber) which can be used in combination with other parameters to form acode. The cryptographic key in the active state is preferably thecryptographic key in an unencrypted state. The cryptographic key in theinactive state is preferably the cryptographic key in an encryptedstate. Thus, the activation code is preferably a decryption mechanism toconvert the encrypted key into the unencrypted key. The cryptographickey may include a number of portions including a plurality of secretcodes.

The step of providing the cryptographic key in an inactive state to apoint in a supply chain may comprise sending the cryptographic key inthe inactive state from the key generator to the point in the supplychain on a non-volatile data support. The non-volatile data support is adata support including non-volatile computer memory, that is to say,computer memory that can retain the stored information even when notpowered. Examples include, but are not limited to, a CD-Rom, a DVD-Romor a removable hard disk. Alternatively, the step of providing thecryptographic key in an inactive state to a point in a supply chain maycomprise providing the cryptographic key in the inactive state via asecure network connection.

The key generator preferably forms part of the verification centre. Inthat case, the step of providing the cryptographic key in an activestate and the activation code to the verification centre may comprisestoring the cryptographic key and the activation code in a databaseaccessible to the verification centre. No transfer of the cryptographickey or the activation code is required.

The step of providing the activation code to the point in the supplychain preferably comprises sending the activation code from theverification centre to the point in the supply chain.

The step of the point in the supply chain transmitting informationrelating to the received cryptographic key preferably comprises sendinginformation relating to the received cryptographic key from the point inthe supply chain to the verification centre.

Preferably, the step of providing the activation code to the point inthe supply chain in response to the point in the supply chaintransmitting information relating to the received cryptographic keyconstitutes registration of the point in the supply chain. Preferably,the information relating to the received cryptographic key and theactivation code are transmitted by means of an asymmetric key pairexchange. In that case, the cryptographic key may include a digitalcryptographic certificate and the asymmetric key pair may comprise apublic key and a private key associated with the digital cryptographiccertificate. The point in the supply chain may provide the informationrelating to the received cryptographic key encrypted using the publickey of the asymmetric key pair. This allows the recipient, for examplethe verification centre, to decrypt the information relating to thereceived cryptographic key using the private key of the asymmetric keypair. The information relating to the received cryptographic key may besent together with information identifying the point in the supplychain, for example the production centre. That may also be encryptedusing the public key of the asymmetric key pair. Thus, a particular keyis linked to a particular production centre or other point in the supplychain. The point in the supply chain may receive the activation code,for example from the verification centre, encrypted by the public key ofthe asymmetric key pair. This allows the point in the supply chain todecrypt the activation code using the private key of the asymmetric keypair.

The information relating to the cryptographic key is preferably storedin a database accessible to the verification centre. Preferably, theinformation relating to the cryptographic key is stored together withinformation identifying the point in the supply chain associated withthe key. Preferably, the information identifying the point in the supplychain is stored together with the cryptographic key.

The step of providing the dynamic key for each batch of manufactureditems to the verification centre may comprise sending the dynamic keyfrom the point in the supply chain to the verification centre. Thedynamic key may be sent via a secure internet connection. Preferably,the dynamic key for a batch of manufactured items is sent together withinformation about the batch of manufactured items. The dynamic keys arepreferably stored in a database accessible to the verification centre.Preferably, each dynamic key is stored together with information aboutthe associated batch of manufactured items.

The dynamic key is simply any piece of information (for example anumber) which can be used in combination with other parameters to form acode. In one embodiment, the dynamic key is a secret code which isdefined for a particular batch of items. The ID code for eachmanufactured item may be derived from the cryptographic key in theactive state and the dynamic key by any number of mechanisms. In oneembodiment, the dynamic key and the cryptographic key are combined toform a pseudorandom noise code which may be used as a digital signaturefor the ID code. The noise code may be derived additionally from the IDcode itself.

In a preferred embodiment, the generated ID codes are not stored. Thisreduces the possibilities for counterfeiters to access valid ID codes.

The method may be used for tax verification and the method may furthercomprise reporting to a government authority the number of ID codesmarked on the manufactured items; and the verification centre storinginformation connecting the ID codes marked on the manufactured items toinformation specific to those manufactured items such that tax paid orowed can be verified against the actual number of items manufactured.

Thus, the count of the codes marked on the manufactured items can beused for tax verification or collection purposes. That is to say, thecount of the correct or actual number of manufactured items marked maybe used for tax verification or collection purposes. This provides anentirely electronic means for a government authority to assess whetherthe correct amount of tax has been paid. Of course, the reporting may beto any interested third party although, for tax verification, the thirdparty will usually comprise a government authority. The potential taxcollection, based on the number of ID codes reported, can be comparedand reconciled with actual tax paid, for example based on actual taxreceipts. The verification centre may be managed by a trusted partyindependent from the manufacturer of the manufactured items. Forexample, the verification centre may be managed by a governmentauthority. This is particular advantageous for tax verification.

The reporting may be performed per shipment and per excise warehousesuch that tax paid or owed can be verified or calculated per shipmentand per excise warehouse. This is advantageous because, in manyjurisdictions, shipment of products from an excise warehouse is thetrigger for tax payment. The reporting may be performed only pershipment. The reporting may be performed only per excise warehouse. Thereporting may be performed for any desired unit. The method may furthercomprise automatically calculating the tax owed per shipment and perexcise warehouse. The method may further comprise automaticallycollecting the tax owed per shipment and per excise warehouse. Themethod may comprise monitoring payment of the tax owed per shipment andper excise warehouse.

The method may be used for tax verification and the method may furthercomprise, before the step of generating an ID code for each manufactureditem, the step of a government authority authorizing the point in thesupply chain to generate a defined number of ID codes.

The authorization may be transmitted from the government authority tothe point in the supply chain. Alternatively, the authorization may betransmitted from the government authority to a manufacturing portal incommunication with the point in the supply chain. The authorization maybe transmitted from the government authority via a secure communicationchannel. The secure communication channel may be dedicated to thecommunication between the government authority and that point in thesupply chain or manufacturing portal.

Preferably, the defined number of ID codes corresponds to a batch ofmanufactured items. Preferably, the authorization corresponds to adefined number of manufactured items having common tax constraints.

The method may further comprise, before the step of the governmentauthority authorizing the point in the supply chain to generate adefined number of ID codes, the step of requesting the authorizationfrom the government authority.

The request may be transmitted to the government authority from thepoint in the supply chain. Alternatively, the request may be transmittedto the government authority from a manufacturing portal in communicationwith the point in the supply chain. Preferably, the request istransmitted via the secure communication channel. The securecommunication channel may be dedicated to the communication between thegovernment authority and that point in the supply chain or manufacturingportal.

The method may further comprise reporting to the government authoritythe number of ID codes marked on the manufactured items.

The reporting may be performed by the point in the supply chain.Alternatively, the reporting may be performed by a manufacturing portalin communication with the point in the supply chain. This step allowsthe government authority to verify that the actual number of ID codesmarked on the manufactured items complies with the defined number of IDcodes authorized by the government authority. The reporting may be toany interested third party although, for tax verification, the thirdparty will usually comprise a government authority. The verificationcentre may store information connecting the ID codes marked on themanufactured items to information specific to those manufactured items,such that tax paid or owed can be verified against the actual or correctnumber of items manufactured. Thus, the count of the ID codes marked onthe manufactured items can be used for tax verification or collectionpurposes. This provides an entirely electronic means for a governmentauthority to assess whether the correct amount of tax has been paid. Thepoint in the supply chain may also report to the government authoritythe tax rate for each manufactured item. If the defined number of IDcodes corresponds to a batch of manufactured items, preferably eachmanufactured item in the batch of manufactured items is associated witha single tax rate.

The method may further comprise a user transmitting the ID code markedon a selected manufactured item to the verification centre; theverification centre deriving, from the ID code, tax information relatingto the selected manufactured item; and the verification centretransmitting at least some of the tax information relating to theselected manufactured item to the user. The user may comprise agovernment authority or other official body.

Using the method of the invention for tax verification provides a numberof advantages. Prior art methods and systems typically use tax stamps orfiscal stickers for tax verification. Both are usually in the form ofadhesive labels directly attached to consumer packaging on manufactureditems. The adhesive label typically includes visible and invisiblesecurity features. Tax stamps are used for tax collection andverification of tax-paid status. Usually, tax stamps carry the actualexcise value due on the specific item on which the tax stamp is applied.Fiscal stickers are also used for tax collection and verification oftax-paid status, but this is usually through verification of productionvolume. Generally, the number of fiscal stickers sold or sent to amanufacturer will need to correspond to the actual or correct number ofmanufactured items sold or distributed for sale. Usually, fiscalstickers do not carry a particular excise value but the manufacturerwill need to pay a price per fiscal sticker issued.

Although there is a widespread belief that fiscal stickers and taxstamps still provide a secure and effective means to protect exciserevenues, recent developments have shown that even the mostsophisticated paper stamps have been successfully counterfeited. Suchcounterfeiting will only increase as counterfeiting technology andknow-how increases. En addition, valid stamps may be diverted, forexample from one authorized manufacturing centre to another unauthorizedmanufacturing centre. Thus, the unauthorized manufacturing site appearsto be authorized because the tax stamps are valid.

Using the method of the invention for tax verification provides a numberof advantages. Firstly, there is no need for distribution of physicalmarkers (for example, adhesive labels), which could easily beintercepted. This also results in a lower environmental impact.Secondly, preferably the ID codes are not stored, which reduces thepossibilities for counterfeiters to access valid ID codes. The method isextremely secure to forgery and tampering of valid codes and to theft ofcodes. This also prevents counterfeiters from hacking into the valid IDcode database and inserting unauthorized codes, thus making itimpossible to distinguish between valid and invalid codes. Thirdly,compared with other tax verification technology, the method of theinvention is inexpensive to implement, which allows it to be more widelyused than existing systems, particularly for small and medium-sizedmanufacturers. Further, many manufacturers already use a system of IDcodes for identifying manufactured items. Such a system can easily beadapted to be used with the method of the invention for tax verificationpurposes. Finally, if desired, users, government authorities or otherparties can easily access tax information about a particularmanufactured item in real time. No specialized systems or training arerequired and any interested party, for example importers, point-of-saleentities and other members of the supply chain, can access taxinformation.

The verification centre may be managed by a trusted party independentfrom the manufacturer of the manufactured items. For example, theverification centre may be managed by a government authority. This isparticular advantageous for tax verification.

The method may be used for production volume verification and the methodmay further comprise reporting to a third party the number of ID codesmarked on the manufactured items.

Production volume verification is the verification of the actual volumesproduced, for example the actual number of items manufactured. Thereporting may be performed by the point in the supply chain.Alternatively, the reporting may be performed by a manufacturing portalin communication with the point in the supply chain. Preferably, thereporting comprises securely reporting, for example over a securenetwork connection. Preferably, the verification centre storesinformation connecting the ID codes marked on the manufactured items toinformation specific to those manufactured items. Thus, ID codes markedon the manufactured items can be linked to information specific to theactual or correct number of manufactured items marked. The number of IDcodes marked on the manufactured items may be reported per tax level,per unit of time, or per Stock Keeping Unit (SKU).

This allows the third party to verify the number of manufactured itemsproduced and distributed. The reporting may take place at regular timeperiods. The reporting does not need to take place immediately after themanufactured items are marked. The third party may be a governmentauthority or another party having interest in the number of itemsmanufactured, for example manufactured at a particular productioncentre. The reporting may comprise sending the ID codes marked on themanufactured items to the third party.

The reporting may be performed per shipment and per excise warehousesuch that production volumes can be verified or calculated per shipmentand per excise warehouse. This is advantageous because, in manyjurisdictions, shipment of products from an excise warehouse is thetrigger for tax payment, so the volume of products exiting a particularwarehouse is critical.

Using the method of the invention for production volume verificationprovides a number of advantages. For example, many manufacturers alreadyuse a system of ID codes for identifying manufactured items. Such asystem can easily be adapted to be used with the method of the inventionfor production volume verification purposes. In addition, productionvolumes can be reported to the third party, for example a governmentauthority, regularly and in real time.

The verification centre may be managed by a trusted party independentfrom the manufacturer of the manufactured items. For example, theverification centre may be managed by a government authority. This isparticular advantageous for production volume verification.

The method may be used for authenticating a selected manufactured itemand the method may further comprise: a user transmitting the ID codemarked on the selected manufactured item to the verification centre; theverification centre deriving from the ID code, the cryptographic key andthe dynamic key used to generate the ID code; the verification centrederiving from the cryptographic key and the dynamic key informationrelating to the selected manufactured item; and the verification centretransmitting at least some of the information relating to the selectedmanufactured item to the user.

This allows a user to verify that the selected manufactured item isgenuine. This also allows the user to obtain selected information aboutthe manufactured item. The information may include information regardingthe production centre or manufacturing site of the manufactured item,information regarding the code generator which generated the ID code onthe manufactured item, information about time (for example, date, hour,minute) of production and other information which may be associated withthe ID code. The user may comprise a government authority or otherofficial body, an importer, point-of-sale entity or member of the supplychain, an end-consumer, or any other interested party.

Preferably, the cryptographic key is stored in a database accessible tothe verification centre. Preferably, the cryptographic key is storedtogether with information identifying the point in the supply chain, forexample the production centre. In that case, the step of theverification centre deriving from the cryptographic key informationrelating to the selected manufactured item may comprise the verificationcentre accessing the database and obtaining information identifying thepoint in the supply chain associated with the cryptographic key.

Preferably, the dynamic key is stored in a database accessible to theverification centre. Preferably, the dynamic key is stored together withinformation about the associated batch of manufactured items. In thatcase, the step of the verification centre deriving from the dynamic keyinformation relating to the selected manufactured item may comprise theverification centre accessing the database and obtaining informationabout the batch of manufactured items associated with the dynamic key.If the dynamic key and the cryptographic key are combined to form apseudorandom noise code used as a digital signature for the ID code, theunsigned ID code may be derived from the digitally signed ID code. Then,the verification centre can determine the dynamic key and thecryptographic key from the database and independently derive the noisecode for comparison with the received digitally signed ID code.

The ID code transmitted from the user to the verification centre may betransmitted via a secure or non-secure internet connection. Theinformation transmitted from the verification centre to the user may betransmitted via a secure or non-secure internet connection.

The verification centre may be managed by a trusted party independentfrom the manufacturer of the manufactured items. For example, theverification centre may be managed by a government authority.

According to the invention, there is also provided apparatus for markingmanufactured items, comprising: a key generator for generating acryptographic key, the cryptographic key having an active state and aninactive state; at least one point in a supply chain for themanufactured items, the key generator being arranged to send thecryptographic key, in the inactive state, to the point in the supplychain, wherein the point in the supply chain is arranged to receive, inresponse to the point in the supply chain transmitting informationrelating to the received cryptographic key, an activation code foractivating the cryptographic key, the activation code allowing thecryptographic key in the inactive state to be activated to form thecryptographic key in the active state; a verification centre forverifying properties of the manufactured items, the key generator beingarranged to provide the cryptographic key in the active state and theactivation code to the verification centre; a code generator, at thepoint in the supply chain, for generating an identification (ID) codefor each manufactured item, the ID code being derived from thecryptographic key in the active state and a dynamic key generated foreach batch of manufactured items, wherein the dynamic key for each batchof manufactured items is provided to the verification centre; a markerat the point in the supply chain for marking each manufactured item withthe ED code; and a counter for counting the number of ID codes marked onthe manufactured items.

The apparatus is an apparatus for marking manufactured items, which maybe used for tax verification (for manufactured items which are subjectto taxation), for production volume verification and for authenticatingmanufactured items. The correct or actual number of manufactured itemsmarked is counted. One ID code is marked on each manufactured item, suchthat each manufactured item can be uniquely identified.

The apparatus may further comprise a database accessible to or formingpart of the verification centre. The cryptographic key may be stored inthe database. The cryptographic key may be stored in the databasetogether with information identifying the point in the supply chainassociated with the key. The dynamic key may be stored in the database.Each dynamic key may be stored in the database together with informationabout the associated batch of manufactured items. The key generator mayform part of the verification centre.

Features described in relation to the method of the invention may alsobe applicable to the apparatus of the invention.

According to the invention, there is also provided a method of markingmanufactured items, the method used for tax verification and comprising:generating a plurality of identification (ID) codes for the manufactureditems; marking each manufactured item with an ID code of the pluralityof ID codes; counting the actual number of ID codes of the plurality ofID codes marked on the manufactured items, wherein the actual number ofID codes is the same as or less than the plurality of ID codes;reporting to a government authority the actual number of ID codes markedon the manufactured items; and storing information connecting the IDcodes marked on the manufactured items to information specific to thosemanufactured items, such that tax paid or owed can be verified againstthe actual number of items marked.

The ID codes may be generated and marked onto the items at any point inthe supply chain for the manufactured items, for example at animportation point, a distribution point, a purchaser, a wholesaler orany other link in the supply chain. Most preferably, however, the pointin the supply chain at which the ID codes are generated and marked ontothe manufactured items comprises a production centre or production linefor the manufactured items.

The method may further comprise, before the step of generating aplurality of ID codes for the manufactured items: requestingauthorization from a government authority to generate ID codes for themanufactured items; and receiving authorization from the governmentauthority to generate a defined number of ID codes for the manufactureditems.

The step of requesting authorization from a government authority maycomprise transmitting a request to the government authority via a securecommunication channel. The request may be transmitted from any point inthe supply chain, for example a production centre. Alternatively, therequest may be transmitted from a manufacturing portal in communicationwith the point in the supply chain. The secure communication channel maybe dedicated to the communication between the government authority andthat point in the supply chain or manufacturing portal.

The step of receiving authorization from the government authority maycomprise receiving the authorization from the government authority via asecure communication channel. The authorization may be transmitted toany point in the supply chain. Alternatively, the authorization may betransmitted to a manufacturing portal in communication with the point inthe supply chain. The secure communication channel may be dedicated tothe communication between the government authority and that point in thesupply chain or manufacturing portal. Preferably, the defined number ofID codes corresponds to a batch of manufactured items.

The step of reporting to the government authority the number of ID codesmarked on the manufactured items may comprise reporting to thegovernment authority via a secure communication channel. The reportingmay be performed by any point in a supply chain for the manufactureditems. Alternatively, the reporting may be performed by a manufacturingportal in communication with a point in the supply chain. The securecommunication channel may be dedicated to the communication between thegovernment authority and that point in the supply chain or manufacturingportal. This step allows the government authority to verify the numberof ID codes marked on the manufactured items. Information connecting theID codes marked on the manufactured items to information specific tothose manufactured items may be stored, such that tax paid or owed canbe verified against the actual or correct number of items manufactured.Thus, the count of the ID codes marked on the manufactured items can beused for tax verification or collection purposes. This provides anentirely electronic means for a government authority to assess whetherthe correct amount of tax has been paid. The tax rate for eachmanufactured item may also be reported to the government authority. Ifthe actual number of ID codes corresponds to a batch of manufactureditems, preferably each manufactured item in the batch of manufactureditems is associated with a single tax rate.

The method may further comprise a user transmitting the ID code markedon a selected manufactured item to a verification centre; theverification centre deriving from the code, tax information relating tothe selected manufactured item; and the verification centre transmittingat least some of the tax information relating to the selectedmanufactured item to the user. The user may comprise a governmentauthority or other official body. The verification centre may be managedby a trusted third party independent from the manufacturer of themanufactured items. For example, the verification centre may be managedby a government authority.

The method of this aspect of invention provides a number of advantages.As already discussed, prior art methods and systems typically use taxstamps or fiscal stickers for tax verification. Although there is awidespread belief that fiscal stickers and tax stamps still provide asecure and effective means to protect excise revenues, recentdevelopments have shown that even the most sophisticated paper stampshave been successfully counterfeited. Such counterfeiting will onlyincrease as counterfeiting technology and know how increases. Inaddition, valid stamps may be diverted, for example from one authorizedmanufacturing centre to another unauthorized manufacturing centre.

The method of this aspect of the invention provides a number ofadvantages. Firstly, there is no need for distribution of physicalmarkers (for example, adhesive labels), which could easily beintercepted. This also results in a lower environmental impact.Secondly, preferably the ID codes are not stored, which reduces thepossibilities for counterfeiters to access valid ID codes. The method isextremely secure to forgery and tampering of valid codes and to theft ofcodes. Thirdly, compared with other tax verification technology, themethod of the invention is inexpensive to implement, which allows it tobe more widely used than existing systems, particularly for small andmedium-sized manufacturers. Further, many manufacturers already use asystem of ID codes for identifying manufactured items. Such a system caneasily be adapted to be used with the method of the invention for taxverification purposes. Finally, if desired, users, governmentauthorities or other parties can easily access tax information about aparticular manufactured item in real time. No specialized systems ortraining is required and any interested party, for example importers,point-of-sale entities and other members of the supply chain, can accesstax information.

In one particular embodiment, the step of generating the plurality of IDcodes for the manufactured items comprises generating the ID codes froma cryptographic key in an active state and at least one dynamic key,each dynamic key being associated with a batch of manufactured items.The cryptographic key may be generated in a key generator. Thecryptographic key in the active state may be provided to theverification centre, together with an activation code for activating thecryptographic key in an inactive state to form the cryptographic key inthe active state. The cryptographic key in the inactive state may beprovided to the code generator. The verification centre may provide theactivation code to the code generator in response to the code generatortransmitting information relating to the received cryptographic key,thereby registering the code generator for code generation. Thecryptographic keys may be stored in a database. The dynamic keys may bestored in a database. Preferably, the ID codes are not stored.

Features of one aspect of the invention may be applicable to anotheraspect of the invention. Moreover, features described in relation to taxverification may be applicable to production volume verification and toauthentication, features described in relation to production volumeverification may be applicable to tax verification and toauthentication, and features described in relation to authentication maybe applicable to tax verification and to production volume verification.

BRIEF DESCRIPTION OF THE DRAWINGS

Embodiments of the invention will now be described, by way of exampleonly, with reference to the accompanying drawings, of which:

FIG. 1 is a schematic view of a marking system according to oneembodiment of the invention;

FIG. 2 is a flow chart showing three steps of the method of oneembodiment of the invention which may be carried out on the system ofFIG. 1;

FIG. 3 shows a further step of the method of FIG. 2 when the system ofFIG. 1 is used for a first embodiment of tax verification;

FIG. 4 shows a further step of the method of FIG. 2 when the system ofFIG. 1 is used for a second embodiment of tax verification.

FIG. 5 shows a further step of the method of FIG. 2 when the system ofFIG. 1 is used to verify a production volume; and

FIG. 6 shows a further step of the method of FIG. 2 when the system ofFIG. 1 is used for authenticating a manufactured item.

DETAILED DESCRIPTION OF THE INVENTION

FIG. 1 is a schematic view of a marking system according to oneembodiment of the invention. In this embodiment, system 101 comprisesone or more production centres 103, 105, 107 for producing manufactureditems 109. Each production centre may comprise a production line orfacility which may be a cigarette making and packaging line. Preferably,production is carried out in batches, each hatch being dedicated to theproduction of a certain number of individual manufactured items. Ifthere are two or more production centres, these may be physicallylocated at the same or different manufacturing sites. In this preferredembodiment, the system includes production centres 103, 105, 107, butthe invention may in fact be performed at an importation point, adistribution point, a purchaser, a wholesaler or any other point in thesupply chain.

Each production centre includes a code generator 111 for generatingcodes for the manufactured items 109. Preferably, the code generator 111is a fully autonomous computer or microcontroller dedicated to aparticular production centre. In this embodiment, each production centrealso includes a marker 113 for marking the generated codes onto themanufactured items 109. The marker 113 may comprise any suitable markingmeans, for example but not limited to, a continuous ink jet printer, adrop-on-demand ink jet printer, a holographic printer, a laser printer,or any other printer or marker that allows printing or marking of thegenerated codes on the individual manufactured items. The printing ormarking of the generated codes may be on each item, on an externalpackage, on labels or in any other convenient way. In one embodiment,the generated codes are printed on adhesive tags or labels to be appliedto the manufactured items, preferably non-removably. In one embodiment,the generated codes are printed by a laser beam on a layer oflaser-sensitive material deposited on the manufactured item or on theitem's packaging. This method allows a code to be impressed through atransparent wrapping layer.

The system 101 further comprises a verification centre 114 whichincludes a key generator 115 for generating keys 209, 211 for use in themarking and authenticating of the manufactured items and a centralserver 1 17. In this embodiment, the code generator 111 can communicatewith the verification centre 114 via a secure internet connection 119and a server 121 local to the production centre, or by other datacommunication means. Alternatively, the code generator 111 mightcommunicate with the verification centre via a manufacturing portaldedicated to one or more production centres.

FIG. 2 is a flow chart showing three steps of the method of oneembodiment of the invention which may be performed on the system 101 ofFIG. 1. Referring to FIGS. 1 and 2, in first step 201 of the method, thekey generator 115 generates a cryptographic key in the form of a machinekey. The key generator 115 generates an unencrypted version of themachine key and an encrypted version of the machine key. The unencryptedversion of the machine key, known as the active machine key 209, isshown with a solid border in FIGS. 1 and 2. The encrypted version of themachine key, known as the inactive machine key 211, is shown with adotted border in FIGS. 1 and 2. The active machine key 209, that is tosay the unencrypted version of the machine key, is generated in the keygenerator 1 15 and is therefore accessible to the central server 117.This is shown in both FIGS. 1 and 2. The key generator 115 sends theinactive machine key 211 to the code generator 111 at the productioncentre 103, 105, 107. This is shown in both FIGS. 1 and 2.

The inactive machine key 211 may be sent from the key generator 115 tothe code generator 111 on a non-volatile data support, for example aCD-Rom, a DVD-Rom or a removable hard disk. The data support isphysically transferred to the code generator ill at the productioncentre 103, 105, 107. Alternatively, the inactive machine key 211 may besent from the key generator 115 to the code generator 111 via a securenetwork connection, for example one involving encryption. This may be onrequest from the code generator 111. This ensures authenticity,confidentiality and integrity of the machine key.

The key generator 115 also generates the activation code 213, whichcomprises the key or code for decrypting the inactive machine key 211 toform the active machine key 209. This activation code 213 is alsoaccessible to the central server 117 and this is also shown in FIGS. 1and 2. Preferably, the active machine key 209 and activation code 213are stored together with identification of the production centre 103,105, 107 to which they are allocated.

In one embodiment, the machine key comprises a number of portions. Theprimary portion may be a plurality of secret codes, for example a saltmatrix. A salt matrix may be, for example, a long string of random orpseudorandom digits of characters. The number of portions may furtherinclude a unique identifier for the machine key, a serialized codedefining how the machine key is to be combined with a dynamic key(discussed below), a digital cryptographic certificate associated themachine key's unique identifier and a machine key policy or license thatcontains the digital cryptographic certificate generated above.

Preferably, the inactive machine key, that is to say the encryptedversion of the machine key, and particularly the plurality of secretcodes, is encrypted using a strong cipher. An example of a suitablecipher is the Triple DES (Data Encryption Standard) block cipher or theTriple DES/Rijandel block cipher. Both apply the Data EncryptionStandard cipher algorithm three times to each data block and the TripleDES/Rijandel is a minor variation of the Triple DES which has beendeveloped by IBM. In that case, the Triple DES or Triple Des/Rijandelkey comprises the activation code 213. Thus, in a preferred embodiment,the active machine key 209 is unencrypted, the inactive key 211 isencrypted using the Triple DES or Triple Des/Rijandel key, and theactivation code 213 comprises that Triple DES or Triple Des/Rijandelkey.

At next step 203, the inactive machine key 211 received by the codegenerator 111 is registered. This is done by the code generator 111sending to the verification centre 114 information 215 about thereceived machine key and any relevant machine information (not shown).This is preferably sent via secure internet connection 119, as shown inFIG. 1, but may be sent by another suitable route. The verificationcentre 114 sends back to the code generator 111 the activation code 213.The activation code 213 allows the inactive machine key 211 to beactivated, and this is shown schematically at 217. The activation code213 is preferably also sent via secure internet connection 119, as shownin FIG. 1. The registration procedure is preferably arranged such thatthe active machine key 209 is never transferred over the internet.

The registration procedure may take the form of a conventionalpublic/private key pair exchange mechanism. This may use an asymmetrickey pair associated with the digital cryptographic certificate formingpart of the machine key, as discussed above. In that case, the publickey of the asymmetric key pair may be in the form of a key issued by athird party, for example, a government authority. The information 215about the received machine key which is sent from the code generator 111to the verification centre 114 may comprise the unique identifier forthe machine key which forms part of the machine key, as discussed above.The relevant machine information (not shown) which is also sent from thecode generator 111 to the verification centre 114 may comprise a uniqueidentifier or certificate for the code generator 111 or productioncentre. That unique identifier may include information about thelocation and identity of the code generator or production centre, whichhas been pre-authorized for production. Preferably, the machine keyunique identifier and the code generator or production centre identifierare encrypted using the public key of the asymmetric key pair associatedwith the certificate of the machine key.

Once the verification centre 114 receives the encrypted machine keyunique identifier and the code generator or production centreidentifier, the verification centre 114 can decrypt using the privatekey of the asymmetric key pair associated with the certificate of themachine key. The verification centre may then check that the machine keyunique identifier and the code generator or production centre identifierare valid. Then, the verification centre 114 sends back to the codegenerator 111 the activation code 213. As already mentioned, preferably,the activation code 213 is in the form of a Triple DES or TripleDES/Rijandel cipher. The verification centre encrypts the activationcode (for example the Triple DES or Triple DES/Rijandel cipher) with thepublic key of the asymmetric key pair associated with the certificate ofthe machine key. This allows the activation code (for example the TripleDES or Triple DES/Rijandel cipher) to be decrypted by the code generatorusing the private key of the asymmetric key pair associated with thecertificate of the machine key. Then, the inactive machine key 21 1 canbe activated using the decrypted activation code 213 in order to formthe active machine key 209.

Once the inactive machine key 211 at the code generator 111 has beenactivated, the production centre is able to manufacture items andproduce codes for the manufactured items at the code generator 111. Asshown at next step 205, the code generator 111 generates a dynamic key219 per batch of manufactured items. The dynamic key 219 is preferably arandom dynamic secret code. The code generator uses the dynamic key 219for a batch, together with the active machine key 209, to generate codes221 (for example alpha-numeric codes) for the manufactured items in thatbatch. As mentioned previously, the particular mechanism to combine thedynamic key 219 for a batch with the active machine key 209 is definedin the serialized code which forms part of the machine key. The codes221 may be marked onto the items by marker 113. Only one code is markedonto each manufactured item 109. The code generator 111 or productioncentre 103, 105, 107 keeps a count 223 of the codes which are markedonto the manufactured items.

In addition, the code generator 111 sends the dynamic key 219 for eachbatch, together with information about the batch (not shown), to theverification centre 1 14. This may be performed via secure internetconnection 119. The information about the batch may include variousinformation, for example but not limited to brand, intended market orintended destination. The dynamic keys 219 do not need to be sent to theverification centre 114 in real-time and can be communicated to theverification centre at any appropriate time, for example monthly. Thedynamic keys 219 sent to the verification centre 114 are stored in adatabase (for example at central server 117) at or accessible from theverification centre 114. The dynamic key 219 for each batch ispreferably stored together with the batch information sent to theverification centre 114 at the same time.

As already discussed, the particular mechanism to combine the dynamickey 219 for a hatch with the active machine key 209 is defined in theserialized code which forms part of the machine key. In one embodiment,the dynamic key 219 and active machine key 209 are combined by the codegenerator to form a pseudorandom noise code which is safe fromcryptographic attacks. The noise code does not allow reconstruction ofthe dynamic key 219 and active machine key 209 from the noise code. Avariety of known techniques are available for generating the noise code,including, but not limited to, table substitution, indexing, hashing,and variations thereof. The noise code is preferably used as a digitalsignature for the ID code. The noise code may be derived from the IDcode itself. The dynamic key 219 and the active machine key 209 areknown only to the verification centre 114 and the code generator 111.

Preferably, the active machine key 209 is deleted when the codegenerator 111 at a particular production centre 103, 105, 107 is put outof service. This prevents a malicious user from gaining access to theactive machine key 209 without proper registration. Additional means fordisabling the code generator 111 and preventing unauthorized use of thecode generator 111 and production centre may be provided.

FIG. 3 shows a further step 207 of the method of FIG. 2 when the systemof FIG. 1 is used for a first embodiment of tax verification. In thiscase, the steps of the method are carried out in the order 201, 203,205, 207. Production volumes, for example the number of items producedin each production batch by each production centre, as well asstatistical production data per brand or per intended market, may begathered and stored. Such production volume information may be used toverify tax collection. The system may be used instead of, or in additionto, a conventional system of tax stamps or fiscal stickers to enableverification of tax-paid status, to protect excise revenues and toprevent counterfeiting of tax stamps or fiscal stickers.

At the third step 205 of the method of FIG. 2, the code generator 111 orproduction centre 103, 105, 107 keeps a count 223 of the codes which aremarked onto the manufactured items during the production process. Thecounting may be done by the code generator 111 and marker 113 at eachproduction centre or at another appropriate location. If the productioncentre includes a sensor for detecting the marked ID codes onmanufactured items, the sensor may perform the counting. This producesthe exact number of codes 221 which were printed or marked and thiscount 223 can be reported to a third party, for example a governmentauthority 301. This is shown in FIGS. 1 and 3.

The tax rate for each manufactured item may be sent to the governmentauthority 301, or other relevant party, together with the count 223.Taxes owed may then be computed by multiplying all printed codesassociated with a specific tax rate by the tax rate itself. This enablesa government authority to verify or compute the taxes owed or the taxesalready paid. The system can be used with different tax rates ifdesired, in which case the rates may be input as part of the batchinformation before production of a batch of items. Preferably, theverification centre 114 stores information connecting the ID codesmarked on the actual or correct number of manufactured items toinformation specific to those marked manufactured items. Then the taxpaid or owed can be verified against items manufactured. Theverification centre 114 may be managed by a trusted third party, forexample the government authority itself.

The production volume information which is reported to the governmentauthority 301 may be reported per shipment or per excise warehouse orper shipment and per excise warehouse. The production volume informationcan be reported by categories such as volume per SKU (stock keepingunit), volume per retail price, volume per domestic production, volumeper export production, volume per duty free. The production volumeinformation can be reported periodically, for example each month or atanother appropriate time.

In some cases, the government authority 301 or other party, may submit arequest to the verification centre 114 to obtain production information,such as production volume. In that case, the verification centre 114 maybe maintained by a trusted third party independent from the producer ofthe manufactured items. The verification centre 114, in response to sucha request, can then obtain the data from the relevant production centres103, 105, 107. This may enable government authorities to verify theproduction volumes declared.

One of the advantages of the embodiment of FIG. 3 is that no preliminaryauthorization is required for each batch of manufactured items. As longas the production centre or particular code generator is registered withthe government authority, the code generator can simply produce as manycodes as required. Then, the actual or correct number of codes used canbe reported once the items have been manufactured and marked.

FIG. 4 shows a further step 204 of the method of FIG. 2 when the systemof FIG. 1 is used for a second embodiment of tax verification. In thiscase, the step 204 shown in FIG. 4 is carried out before step 205,either after or in parallel with steps 201 and 203. The system may beused instead of, or in addition to, a conventional system of tax stampsor fiscal stickers to enable verification of tax-paid status, to protectexcise revenues and to prevent counterfeiting of tax stamps or fiscalstickers.

At step 204, the code generator 111 and marker 113 at each productioncentre request authorization from a government authority 301 to generatea defined number of ID codes. This is shown schematically at 403.Alternatively, the request may be sent from a manufacturing portaldedicated to one or more production centres. In response, the governmentauthority 301 authorizes the production centre to generate a definednumber of ID codes. This is shown schematically at 405.

Preferably, the request 403 triggers payment for the quantity of IDcodes ordered. The authorization may therefore indicate a tax-paidstatus. The production centre is only eligible to manufacture items andproduce codes for the manufactured items at the code generator 111 onceauthorization is received. A request may be sent for each productionbatch of manufactured items. Preferably, all manufactured items in thebatch have the same associated tax rate.

The step of FIG. 4 may be combined with reporting to the governmentauthority the actual or correct number of ID codes marked on themanufactured items, as described in relation to FIG. 3. This may provideconfirmation of the production volume.

FIG. 5 shows a further step 208 of the method of FIG. 2 when the systemof FIG. 1 is used to verify a production volume. In this case, the stepsof the method are carried out in the order 201, 203, 205, 208.Production volumes, for example the number of items produced in eachproduction batch by each production centre, as well as statisticalproduction data per brand or per intended market, may be gathered andstored. Such production volume information may be used for productionmanagement, or for official purposes, and may be available to selectedusers.

At the third step 205 of the method of FIG. 2, the code generator 111 orproduction centre 103, 105, 107 keeps a count 223 of the codes which aremarked onto the manufactured items during the production process. Thecounting may be done by the code generator ill and marker 113 at eachproduction centre or at another appropriate location. If the productioncentre includes a sensor for detecting the marked ID codes onmanufactured items, the sensor may perform the counting. This producesthe exact number of codes 221 which were printed or marked. As shown inFIG. 5, the fourth step 208 of the method for production volumeverification is to report the count 223 to an interested party, forexample a government authority 301. This is shown in FIGS. 1 and 5.

Preferably, the verification centre 114 stores information connectingthe ID codes marked on the manufactured items to information specific tothose marked manufactured items. In some cases, the government authority301 or other party, may submit a request to the verification centre 114to obtain production information, such as production volume. In thatcase, the verification centre 114 may be maintained by a trusted thirdparty independent from the producer of the manufactured items. Theverification centre 114, in response to such a request, can then obtainthe data from the relevant production centres 103, 105, 107. This mayenable government authorities to verify the production volumes declared.

The production volume information which is reported to the governmentauthority 301 may be reported per shipment or per excise warehouse orper shipment and per excise warehouse. The production volume informationcan be reported by categories such as volume per SKU (stock keepingunit), volume per retail price, volume per domestic production, volumeper export production, volume per duty free production (if themanufactured items are subject to special taxes). The production volumeinformation can be reported periodically, for example each month or atanother appropriate time.

FIG. 6 shows a further step 210 of the method of FIG. 2 when the systemof FIG. 1 is used for authenticating a manufactured item. In this case,the steps of the method are carried out in the order: 201, 203, 205,210. At step 210, when a user 601 wishes to authenticate an individualmanufactured item, the user sends the code 221 on the item toverification centre 1 14. This is shown in FIGS. 1 and 6. The user 601may send the code to the verification centre 1 14 by any suitable meanssuch as a secure or non-secure internet connection. From the code 221,the verification centre 1 14 can derive the dynamic key 219 and theactive machine key 209 used to generate the code 221. This is done by areverse of the process used to generate the code 221 at step 205.

For example, if the dynamic key 219 and active machine key 209 arecombined to form a pseudorandom noise code which is used as a digitalsignature for the ID code, the verification centre can derive theunsigned ID code from the digitally signed ID code. Then, theverification centre 114 can independently derive the dynamic key 219 andactive machine key 209 from information relating to the ID code andcheck this against the received noise code.

From the derived active machine key 209, the production centre 103, 105,107 at which the item was manufactured can be determined, since theactive machine keys are preferably stored in the database together withdetails of their associated production centres. From the derived dynamickey 219, the batch information for the item can be determined since thedynamic keys are preferably stored in the database together with theassociated batch information. Thus, the verification centre 114 canderive, from the code 221 sent from user 601, various information 603about the individual item. This is shown schematically in FIG. 6. Theverification centre may also undertake checks that the variousparameters (for example, the active machine key, the dynamic key, thebatch information) have valid values. Then all, or selected portions of,the information 603 can be sent to the user 601. This is shown in FIGS.1 and 6. The information 603 is preferably sent to the user 601 via thesame means as the original code was sent.

A privileged user, for example an employee of the manufacturer or of agovernment authority may receive additional privileged information notavailable to a generic user. Such privileged information may includeproduction volume information, statistical information related to theproduction centre or to verification centre access, the expiry date,warranty information, importation routes and so on.

The embodiments described provide an improved method and system formarking manufactured items, which may be used for tax verification asshown in FIGS. 3 and 4, for production volume verification as shown inFIG. 5 and for authenticating manufactured items as shown in FIG. 6.

1. A method of marking manufactured items, comprising: providing acryptographic key in an inactive state to a point in a supply chain forthe manufactured items; providing the cryptographic key in an activestate and an activation code for activating the cryptographic key in theinactive state to form the cryptographic key in the active state, to averification centre; providing the activation code to the point in thesupply chain in response to the point in the supply chain transmittinginformation relating to the received cryptographic key, the activationcode allowing the cryptographic key in the inactive state at the pointin the supply chain to be activated to form the cryptographic key in theactive state; generating, at the point in the supply chain, anidentification (ID) code for each manufactured item, the ID code beingderived from the cryptographic key in the active state and a dynamic keygenerated for each hatch of manufactured items; providing the dynamickey for each batch of manufactured items to the verification centre;marking each manufactured item with the ID code; and counting the numberof ID codes marked on the manufactured items.
 2. A method according toclaim 1, wherein the cryptographic key is generated in a key generatorseparate from the point in the supply chain.
 3. A method according toclaim 1 or claim 2, wherein the step of providing the activation code tothe point in the supply chain comprises sending the activation code fromthe verification centre to the point in the supply chain.
 4. A methodaccording to any preceding claim, wherein the step of the point in thesupply chain transmitting information relating to the receivedcryptographic key comprises sending information relating to the receivedcryptographic key from the point in the supply chain to the verificationcentre.
 5. A method according to any preceding claim, wherein thegenerated ID codes are not stored.
 6. A method according to anypreceding claim, wherein the method is used for tax verification, themethod further comprising: reporting to a government authority thenumber of ID codes marked on the manufactured items; and theverification centre storing information connecting the ID codes markedon the manufactured items to information specific to those manufactureditems such that tax paid or owed can be verified against the actualnumber of items manufactured.
 7. A method according to claim 6, whereinthe reporting is performed per shipment and per excise warehouse suchthat tax paid or owed can be verified or calculated per shipment and perexcise warehouse.
 8. A method according to any preceding claim, whereinthe method is used for tax verification, the method further comprising,before the step of generating an ID code for each manufactured item, thestep of a government authority authorizing the point in the supply chainto generate a defined number of ID codes.
 9. A method according to claim8, further comprising, before the step of the government authorityauthorizing the point in the supply chain to generate a defined numberof ID codes, the step of requesting the authorization from thegovernment authority.
 10. A method according to claim 8 or claim 9,further comprising reporting to the government authority the number ofID codes marked on the manufactured items.
 11. A method according to anypreceding claim, wherein the method is used for production volumeverification, the method further comprising reporting to a third partythe number of ID codes marked on the manufactured items.
 12. A methodaccording to any preceding claim, wherein the method is used forauthenticating a selected manufactured item, the method furthercomprising: a user transmitting the ID code marked on the selectedmanufactured item to the verification centre; the verification centrederiving from the ID code, the cryptographic key and the dynamic keyused to generate the ID code; the verification centre deriving from thecryptographic key and the dynamic key information relating to theselected manufactured item; and the verification centre transmitting atleast some of the information relating to the selected manufactured itemto the user.
 13. Apparatus for marking manufactured items, comprising: akey generator for generating a cryptographic key, the cryptographic keyhaving an active state and an inactive state; at least one point in asupply chain for the manufactured items, the key generator beingarranged to send the cryptographic key, in the inactive state, to thepoint in the supply chain, wherein the point in the supply chain isarranged to receive, in response to the point in the supply chaintransmitting information relating to the received cryptographic key, anactivation code for activating the cryptographic key, the activationcode allowing the cryptographic key in the inactive state to beactivated to form the cryptographic key in the active state; averification centre for verifying properties of the manufactured items,the key generator being arranged to provide the cryptographic key in theactive state and the activation code to the verification centre; a codegenerator, at the point in the supply chain, for generating anidentification (ID) code for each manufactured item, the ID code beingderived from the cryptographic key in the active state and a dynamic keygenerated for each batch of manufactured items, wherein the dynamic keyfor each batch of manufactured items is provided to the verificationcentre; a marker at the point in the supply chain for marking eachmanufactured item with the ID code; and a counter for counting thenumber of ID codes marked on the manufactured items.
 14. A methodsuitable for tax verification and comprising: generating a plurality ofidentification (ID) codes for the manufactured items; marking eachmanufactured item with an ID code of the plurality of ID codes; countingthe actual number of ID codes of the plurality of ID codes marked on themanufactured items, wherein the actual number of ID codes is the same asor less than the plurality of ID codes; reporting to a governmentauthority the actual number of ID codes marked on the manufactureditems; and storing information connecting the ID codes marked on themanufactured items to information specific to those manufactured items,such that tax paid or owed can be verified against the actual number ofitems marked.
 15. A method according to claim 14, further comprising,before the step of generating a plurality of ID codes for themanufactured items: requesting authorization from a government authorityto generate ID codes for the manufactured items; and receivingauthorization from the government authority to generate a defined numberof ID codes for the manufactured items.